New Audit Announcements
Audit Initiated of DOT’s Price Reasonableness Reviews of Fixed-Price Contracts
The Office of Inspector General is initiating an audit on the Department of Transportation’s (DOT) methods and practices to determine price reasonableness prior to awarding fixed-price contracts. Since 2011, DOT has obligated $2.1 billion annually in fixed-price contracts for goods and services to build and support a transportation system that meets national interests. According to the Federal Acquisition Regulations (FAR), agencies are to perform a fair and reasonable price determination—or price reasonableness review—prior to awarding a fixed-price contract. Our objective is to determine the extent to which and how DOT and its Operating Administrations obtain, perform, and use pre-award price reasonableness reviews to establish fair and reasonable prices on fixed-price contracts.